Review – Music Broadcast Limited IPO (Radio City IPO)

Details on Music Broadcast Limited IPO (Also known as Radio City IPO):
Issue Date: March 6, 2017 – March 8, 2017
Offer Price Band: Rs. 324 – Rs. 333 (tentative price)
Fresh Issue: INR 400 Crores
Offer For Sale: 26,58,518 Shares
Total IPO Size: INR 488.52 Crores at upper price band
Minimum Bid (Lot Size): 45 shares
Face Value: INR 10 per share
Retail Allocation: 35% (including employees)
Listing On: NSE / BSE
Scheduled Listing: March 17, 2017
If you apply for this IPO and get allottment then by 16th March 2017 your allotted shares will be transferred to your demat account. The trading on this counter will start on 17th March 2017. And if you do not get allottment then by 15th March you will get ail and SMS from your bank with notice of the refund.

Music Broadcast Limited is a subsidiary organization of Jagran Prakashan Limited. And this company is the first private radio broadcaster operationg in India under the trade name of Radio City. Radio City has 29 radio stations all over the country. The company delivers programmes in various languages like Hindi, Tamil, Kannada, Malayalam and Telugu. Radio City also operates 31 web radio stations with live radio jockey, 24 hours a day, 7 days a week.
Now a quick look at the companies balance sheet. Please see the image below.

So we can clearly see from the company’s financial figures that the revenue of the company has become doubles between the period of 2012-2016. The profit after tax (PAT) was in negative in 2012, but we have seen steady recovery in the profits also. The company also managed to reduce its debts.
The objects of Music Broadcast Limited IPO (Radio City IPO) are:
1) Redemption of listed NCDs.
2) Early redemption of JPL NCDs and repayment / pre-payment of JPL ICDs.
3) General corporate purposes.
Now, the market is in peak, so we are seeing floods of IPOs. It looks like this company will also manage to post gains in listing. But in general I suggest to exit Music Broadcast Limited IPO (Radio City IPO) after booking listing gains. In case we see Mutual Funds or Insurance Companies are bidding for this stock, we can hold some more but overall I am looking to Music Broadcast Ltd IPO as a short term opportunity.